Few more problems that I was in need. Same dead-line. Thanks.


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Few more problems that I was in need. Same dead-line. Thanks. Tax return problems.docx Problem 1 Tax Return 2 Go to the IRS web page and download a Form 1040 for 2015 and save it to your computer or flash drive. The web: www.irs.gov Go to –>more forms, current forms and publications, type 1040 in the search box. Be sure to save this form on your computer; please "save as" Your Name Tax Return 2" Type into the pdf form and when it is complete be sure to save it! Put your name on the return. Skip the address and social security number or make up something fun. Complete the return based on the following data: Choose Single as your tax status (Note this is slightly different from the last problem!) Salary $40,000 with Federal tax withholding of 5,000, Interest Income -Chase Bank $50 and Ford Company qualified dividends $ 3000. Note that qualified dividends and long term capital gains are taxed at a preferred rate. Although the taxable income will be the same as tax return 1, the tax will be different. You will go to the instructions and look up the tax amount from the tax tables for the amount of taxable income excluding the qualified dividend. That tax on income before the dividend is then added to the amount of the tax on the qualified dividends. The tax on qualified dividends is multiplied by these percentages: 0% if the top regular tax rate is 10% or 15% 15% if the top regular tax rate is 25% or 28% or 33% or 35% 20% if the regular tax is 39.6% Problem 2 Tax Return 3 Tom Jones and Doris Day, each age 42, married on September 7, 2014. Tom and Doris will file a joint return for the year. Tom’s Social Security number is 111-11-1111. Doris’s Social Security number is 123-45-6789. They live at 211 Brickstone Drive, Atlanta, GA 30304. Tom was divorced from Sarah Jones in March 2015. Under the divorce agreement, Tom is to pay Sarah $1,250 per month for the next 10 years or until Sarah’s death, whichever occurs first. Tom pays Sarah $15,000 in 2015. In addition, in January 2015, Tom pays Sarah $50,000, which is designated as being for her share of the marital property. Sarah’s Social Security number is 123-45-6788. Tom’s salary for the year is $150,000, and his employer, BlueBus, Inc. (Federal I.D. No. 98-7654321). His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Doris recently graduated from law school and is employed by HelpMe, Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives a salary of $40,000. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Doris has $2,500 in qualified dividends on Ford Corporation stock she inherited. Tom and Doris receive a $1,900 refund on their prior state income taxes. They itemized deductions on their prior Federal income tax return (total of $15,000) so the state income tax refund is taxable. Tom and Doris itemized this year. They pay $4,500 interest and $1,450 property taxes on their personal residence. Their charitable contributions total $2,400 (all to their church). They paid state taxes with were deducted from their pay of $8,000 and 2,400. Compute the Jones’s net tax payable (or refund due) for the year. If you use 2015 tax forms for your solution, you will need Form 1040 and Schedules A and B. Problem 3 Tax Return 4 Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2015. She is 45 years old and has been divorced for four years. She received $1,200 of alimony payments each month from her former husband. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of 2015. Reba provides more than one-half of Heather’s support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Lu

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